BUSINESS SEGMENT DATA

6 Months Ended

Jun. 30, 2020

BUSINESS SEGMENT DATA

BUSINESS SEGMENT DATA

NOTE 22. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, management services, commercial loan investments, and real estate operations. The management services segment consists of the revenue generated from managing PINE and the Land JV. The management services segment had no assets as of June 30, 2020 and December 31, 2019, and therefore there are no related capital expenditures or depreciation and amortization for the periods presented. The real estate operations segment previously included land sales from the Daytona Beach land portfolio as well as revenue and expenses related to the sale of mitigation credits and subsurface operations. Upon the completion of the Land JV transaction in the fourth quarter of 2019, the real estate operations related to land sales have been classified as discontinued operations in the accompanying consolidated statements of income for the three and six months ended June 30, 2019 and the real estate operations segment remaining consists of subsurface operations and mitigation credit sales. The identifiable assets and liabilities related to the discontinued real estate operations have been separately disclosed as discontinued real estate operations for the periods presented.

Our income property operations consist primarily of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 81.3% and 66.0% of our identifiable assets as of June 30, 2020 and December 31, 2019, respectively, and 87.0% and 97.5% of our consolidated revenues for the six months ended June 30, 2020 and 2019, respectively. Our management fee income consists of the management fees earned for the management of PINE and the Land JV. As of June 30, 2020, our commercial loan investment portfolio consisted of one fixed-rate first mortgage and the Ground Lease Loan. Our continuing real estate operations primarily consist of revenues generated from leasing and royalty income from our interests in subsurface oil, gas and mineral rights, and the sale of mitigation credits.

The Company evaluates performance based on profit or loss from operations before income taxes. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skills.

Information about the Company’s operations in different segments for the three and six months ended June 30, 2020 and 2019 is as follows:

	Three Months Ended				Six Months Ended
	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Revenues:
Income Properties	$	11,473,112	$	10,375,295	$	22,476,143	$	21,099,713
Management Services		695,051		—		1,397,652		—
Commercial Loan Investments		835,190		52,765		1,887,239		52,765
Real Estate Operations		6,390		260,771		87,141		495,672
Total Revenues	$	13,009,743	$	10,688,831	$	25,848,175	$	21,648,150
Operating Income:
Income Properties	$	8,904,650	$	8,740,575	$	17,794,586	$	17,532,505
Management Services		695,051		—		1,397,652		—
Commercial Loan Investments		835,190		52,765		1,887,239		52,765
Real Estate Operations		(50,245)		220,642		(1,493,860)		409,376
General and Corporate Expense		(7,191,858)		(6,193,763)		(16,740,569)		(12,041,670)
Gain on Disposition of Assets		7,075,858		11,811,907		7,075,858		18,681,864
Gain on Extinguishment of Debt		504,544		—		1,141,481		—
Total Operating Income	$	10,773,190	$	14,632,126	$	11,062,387	$	24,634,840
Depreciation and Amortization:
Income Properties	$	5,015,590	$	4,068,968	$	9,563,011	$	7,408,824
Corporate and Other		5,597		5,619		10,647		12,050
Total Depreciation and Amortization	$	5,021,187	$	4,074,587	$	9,573,658	$	7,420,874
Capital Expenditures:
Income Properties	$	250,085	$	40,972,487	$	138,241,592	$	41,030,492
Commercial Loan Investments		—		7,840,000		6,754,375		7,840,000
Discontinued Real Estate Operations		—		1,028,984		—		1,899,493
Corporate and Other		6,471		—		12,317		2,061
Total Capital Expenditures	$	256,556	$	49,841,471	$	145,008,284	$	50,772,046

	As of
	June 30, 2020		December 31, 2019
Identifiable Assets:
Income Properties	$	560,086,707	$	464,285,272
Commercial Loan Investments		18,494,950		35,742,218
Real Estate Operations		67,014,688		65,554,619
Discontinued Land Operations		833,167		833,167
Corporate and Other		42,423,359		136,870,927
Total Assets	$	688,852,871	$	703,286,203

Operating income represents income from continuing operations before loss on early extinguishment of debt, interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses, impairment charges, depreciation and amortization expense, and gains on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Real Estate Operations includes the identifiable assets of the Mitigation Bank JV and Land JV. Corporate and other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations.

The Management Services segment had no capital expenditures and held no assets as of June 30, 2020 or December 31, 2019.